TIDMMILA
RNS Number : 4356G
Mila Resources PLC
15 November 2022
Mila Resources Plc / Index: LSE / Epic: MILA / Sector: Natural
Resources
15 November 2022
Mila Resources Plc
('Mila' or the 'Company')
Kathleen Valley Drilling Results and Operational Update
Mila Resources Plc (LSE:MILA), the post-discovery gold
exploration accelerator, wishes to inform that drilling for 2022 is
now complete at its Kathleen Valley Gold Project in Western
Australia ('Kathleen Valley' or the 'Project') and assays for the
first three of the four drill holes completed have been received
.
Kathleen Valley is located in a region that hosts some of the
largest gold projects in Australia, including the adjacent,
high-grade Bellevue Gold Project, the high-grade producing Agnew
Gold Mine located 50km to the south and the Bronzewing Gold Mine
50km to the northeast. Initial drilling has confirmed consistent,
high-grade mineralisation and Mila has been focussed on expanding
this to define a sizeable gold-silver resource.
Overview
-- All samples have been submitted for laboratory analysis and
assays received for the first three holes of the drill programme
(KVDD0035-0037)
-- The three holes did not return economic widths and grade but
have provided strong evidence of pathfinder elements to define the
root zone of the system
-- The Company will now undertake structural, geophysical and
geochemical analysis to better understand the system trending NW
ahead of further drilling in Q1 2023
-- KVDD0038 was completed to a depth of 365.5m and is awaiting assay
-- Down Hole Electromagnetic (DHEM) survey completed on two of
the four recently completed holes with results and interpretation
pending
-- Drilling at Coffey now comprises a combined total of 38
reverse circulation (RC) and diamond drill (DD) holes for 8,171.35m
which will be included in the planned resource estimation
process
-- Site rehabilitation completed in preparation for the summer
rains to rejuvenate the native vegetation on site
Neil Hutchison, Technical Director of Mila commented: "It's been
a rewarding year of drilling since Mila's listing on the LSE 12
months ago. We have completed three drilling campaigns comprising
of an initial RC programme in late 2021 followed by two Diamond
Drilling programmes in 2022. Drilling at the Coffey Deposit has
returned some outstanding gold-silver results over broad widths
which underpin the Company's belief that the Coffey mineralisation
will grow to a substantial sized resource.
"These new results, whilst clearly less impressive, are by no
means a setback for the Coffey deposit. We now have strong
pathfinder elements and visual structural corridor defining the
root zone of the system which is showing structural complexity
which is quite normal for gold systems in the Goldfields region.
The drilling programme has given us important vectors for the
forthcoming exploration season and now we will work with the team
and consultants to better understand the system. Our programme for
2023 will focus on extending the mineralisation along strike to the
NW where it is open and untested. Further supporting technical
analysis works will be undertaken between the scheduled drilling
programmes, with drilling to recommence in Q1 2023."
Drilling Results Q4 2022
Mila has completed its final drilling campaign of 2022 with four
diamond core holes for 1462.55m being completed during the
September-November period. The final hole KVDD0038 was drilled to a
depth of 365.5m bringing Mila's total to 26 drill holes for
6,011.35m in the last 12 months since listing on the LSE at the
start of November 2021.
DHEM has been completed inside holes KVDD0037 and KVDD0038 which
are the two deepest holes drilled to date. DHEM results are
currently being processed and interpreted by the Company's
consulting geophysicist. The data will be combined with the
previous geophysical data and interpretated in conjunction with the
existing geological model with the aim of located more sulphide
mineralisation at depth and along strike from the defined
mineralisation at the Coffey Deposit.
All samples have been cut and submitted for laboratory analysis
with the results of the first three holes KVDD0035, KVDD0036 and
KVDD0037 just returned from the laboratory (Table 1). The results
of KVD0038 are still outstanding and are currently in process at
the laboratory.
Table 1: Intersections from Recent Diamond Core Drilling at the
Coffey Deposit .
Hole From (m) To (m) Width Gold Silver Copper Zinc Sulphur
ID (m) (g/t) (g/t) (%) (%) (%)
---------- --------- ------- ------ ------- ------- ------- ----- --------
KVDD0035 259.55 263.50 3.95 0.33 4.21 0.13 0.20 2.4
---------- --------- ------- ------ ------- ------- ------- ----- --------
incl 261.85 262.35 0.50 1.04 11.60 0.55 0.07 7.6
---------- --------- ------- ------ ------- ------- ------- ----- --------
KVRD0036 316.0 318.0 2.0 0.15 1.22 0.05 0.03 5.1
---------- --------- ------- ------ ------- ------- ------- ----- --------
And 346.0 347.0 1.0 0.30 0.25 0.01 0.02 2.2
---------- --------- ------- ------ ------- ------- ------- ----- --------
KVRD0037 348.1 349.0 0.9 0.03 3.7 0.14 0.01 3.3
---------- --------- ------- ------ ------- ------- ------- ----- --------
And 355.0 356.0 1.0 0.36 0.80 0.02 0.02 2.1
---------- --------- ------- ------ ------- ------- ------- ----- --------
And 401.85 403.05 1.2 0.01 1.5 0.13 0.01 7.5
---------- --------- ------- ------ ------- ------- ------- ----- --------
Interpretation of Results
Results from the deep holes matched the visual observations
showing anomalous pathfinder and base metal elements associated
with the observed shearing, alteration, sulphide mineralisation and
quartz veined zones, defining the structural corridor and fluid
pathways that host the Coffey mineralisation.
The assay results for these recent holes returned disappointing
results through these structurally sheared zones. Ag-Cu-Pb-Zn where
still anomalous through these zones along with the As-Ba-K-Sr
pathfinder elements, however a maximum result of 0.5m at 1.04g/t
Au, 11.60g/t Ag, and 0.55% Cu was returned in hole KVDD0035 from
261.85-262.35m (Table 1). This occurs within a broader 3.95m wide
zone (259.55-263.5m) comprising 0.33g/t Au, 4.21g/t Ag, 0.13% Cu
& 0.20% Zn. Silver (1.85g/t), Zinc (0.11%) and the pathfinder
element where anomalous over an 11m wide zone defining the corridor
from 257.55-269.0m.
Holes KVDD0036 and KVDD0037 returned 2 narrow upper and lower
anomalous zones within the broader anomalous pathfinder structural
corridors (Table 1). Hole KVDD0038 also intersected two visual
structural shear zones in the NE corner of the drilling area and
assays are awaiting to confirm if the shear is mineralised in the
northern extension of the Coffey structure.
The fluid pathway reveals a strong geochemical fingerprint which
is anomalous in As, Ba, K and Sr compared to the barren footwall
and hanging wall basalts. This defines a strong structural corridor
providing a good vector to mineralisation when mapping and
interpreting the drilling results. Its normal for gold deposits to
pinch and swell, form conjugate shear sets or step over to form new
mineralised dilation zones within these structural corridors. The
pathfinder elements and the visually deformed structures within the
rocks are still present supporting the model that Mila are still in
the "root zone" of the structural plumbing system and confident
that additional lodes are likely to be present. Drill core has been
sent off for thin section and petrographic works to determine the
origin and structural signature of the Coffey Deposit.
Mila's geologists are still confident that with the pending DHEM
results, detailed structural analysis of the data and core
collected to date, as well as detailed geochemical analysis of the
full assay suite, that the next mineralised zone will be identified
given the visual and pathfinder strength of the structural corridor
defining the Coffey Shear zone.
The work programme for 2023 remains unchanged, with RC drilling
and diamond tails planned along strike for 350m towards the NW,
potentially extending the shallow mineralisation which is untested
and open. Deeper diamond drilling will commence following the
geophysical, geochemical and structural analysis works, testing for
extensions or additions to the mineralised system.
All site rehabilitation has been completed in preparation for
the summer rain period which will assist in rejuvenating the native
vegetation within the drilling area. All drill sumps, drill pads,
sample spoils and closed-out access tracks have been rehabilitated
and contoured with the assistance of the Tjiwarl Aboriginal
Rangers.
During Mila's three drilling campaigns, the Company is still
seeing the greater potential of the Coffey Au-Ag Deposit. Coffey
has grown significantly in size, width and grade compared to the
initial predrilling resource that Mila listed on. The Company is
still optimistic that it will be able to upgrade its JORC Resource
for Coffey next year to included Indicated as well as Inferred
category JORC material and extending the mineralisation along
strike to the NW where it remains open and untested.
Further Technical Discussion
Geochemical modelling of the Coffey deposit demonstrates a
strong relationship between the pre-existing sulphide horizon which
is interpreted to be a VMS-style horizon derived from a
black-smoker on the ancient seafloor (Figure 1). The black-smoker
deposited Ag-Cu-Pb-Zn bearing sulphide mineralisation between two
hosting pillow basalt flows, which formed the Mt Goode Basalt unit
that hosts the Coffey Deposit and the Bellevue Gold mineralisation
within the Yakabindie Domain (Figure 2).
The Yakabindie Domain correlates to the Kambalda Sequence of the
Kalgoorlie Terrane to the south. To the east of the Yakabindie
Domain, crustal scale structural deformation occurred along the
Keith-Kilkenny Shear (Figure 3) which stretched over 700km from
Norseman, through Kalgoorlie to Wiluna, forming the rich goldmines
throughout the Goldfields region. The Miranda and Emu Shears formed
as local structures paralleling the major Keith-Kilkenny Shear
(Figures 3) with the Highway and Yakabindie Shears forming as local
splays off the Miranda Shear, resulting in gold bearing fluids
penetrating the Mt Goode Basalts.
Figure 1: Simplified black smoker on the sea floor producing
metalliferous sediments from sulphide bearing "black smoke".
The belt has a complex deformation history with structural
reactivation and switching kinematics resulting in Bellevue
mineralisation being controlled by north-south shear zones as well
as in sub-parallel and conjugate structures in the footwall and
hanging wall rocks between these shear zone splays.
To the south of Mila's tenure, the NW-SE trending Yakabindie
Shear developed off the Miranda Shear along the granite-greenstone
contact (Figure 3). Subparallel shearing within the Mt Goode
Basalts resulted in the introduction of gold bearing fluids which
deposited gold mineralisation at the Coffey Deposit as well as
Bellevue Gold's (ASX:BGL) Government Well Project 2km along strike
to the NW (Figure 3).
Figure 2: Simplified stratigraphic column for the Yakabindie
Domain.
Mila's geologists interpret that the pre-existing Ag-Cu-Pb-Zn
bearing VMS style sulphide horizon at Coffey provided an ideal
setting from the structural deformation to occur, carrying gold
bearing fluids in, remobilising and concentrating the silver from
the sulphide horizon and depositing the Au-Ag metals forming the
Coffey Deposit. The fluid pathway reveals a strong geochemical
fingerprint which is anomalous in As, Ba, K and Sr compared to the
barren footwall and hanging wall basalts. This defines a strong
structural corridor providing a good vector to mineralisation when
mapping and interpreting the drilling results.
Figure 3: Local geological map with Coffey Deposit Location and
controlling structural shear zones.
Competent Person Statement
The information in this announcement relating to Exploration
Results is based on information compiled by Neil Hutchison, who is
a Technical Director of Mila Resources, and a member of The
Australasian Institute of Geoscientists. Mr Hutchison has
sufficient experience relevant to the style of mineralisation and
type of deposit under consideration, and to the activity he is
undertaking to qualify as a Competent Person as defined in the 2012
Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resource and Ore Reserves".
Mr Hutchison consents to the inclusion in the report of the
matters based on his information in the form and context in which
it appears.
**ENDS**
For more information visit www.milaresources.com or contact:
Mark Stephenson info@milaresources.com
Mila Resources Plc
Jonathan Evans
Tavira Securities Limited +44 (0) 20 7100 5100
Nick Emerson
SI Capital +44 (0) 20 3143 0600
Susie Geliher and Max Bennett
St Brides Partners Limited +44 (0) 20 7236 1177
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